2024 REPORT

The State
of Talent
Optimization
We surveyed more than 200 Human Resources (HR) professionals, executives,
board members, and business owners on the most pressing talent-related
issues for our annual State of Talent Optimization Report. The results confirm:
Perhaps more than ever before, HR is at the center of the business orbit.
Introduction
Businesses are asking today’s HR professionals to administer benefits, address public safety concerns,
assess emerging AI, and help temper labor force unrest—often all in the same week. Throw in an election
cycle fraught with tension, a tenuous economy, and execs harnessing new leadership habits, and it’s no
wonder:

HR and People Operations are viewed as integral to business strategy.

The talent universe is always expanding, evolving with the world of work and adjusting to constantly
shifting employer-employee dynamics. The demands on people professionals—those who sit at the
center of the talent universe—are more pronounced than ever.

Seventy percent of respondents affirmed that HR is an essential piece of the leadership puzzle. That
represents a sea change in mindset from previous years, when a minority of respondents held that
opinion. But mindset only takes a business so far.

70%
Say HR is an essential piece
of the leadership puzzle
The State of Talent Optimization will
help you put that puzzle together and
become the leader you need to be.
 Keeping a pulse
on the organization
HR Leaders are the executive team’s MVP, communicating thoughtfully throughout the business—but
not in the same manner with every person, or for every problem. They know people’s quirks, and often
understand the dynamics at play across the organization better than the people who “run it.”

It’s that sort of disconnect that HR professionals are distinctly positioned to fix. But in order to do so,
you need to communicate effectively across every dimension of the business universe, addressing each
challenge according to its unique effects on each party. And to do that, you need the right tools and the
right data.

The four core stakeholders:

Executives

Employees HR Leaders Managers

Candidates
Talent Optimization
applied by HR leaders
All roads lead through the HR hub. Talent Optimization (“TO”)—the practice of aligning business
and talent strategies—gives those roads direction. As a talent professional in 2024, you’re
seen as the link to four stakeholders of the business particularly pivotal to its success:

• Managers who might struggle to lead effectively

• Candidates who don’t always fit their jobs, whose potential is unclear
• Executives who worry about aligning on organizational objectives
• Employees who are disengaged, lacking motivation, connection, and appreciation

Talent-optimized organizations are uniquely positioned to support these stakeholders and the
challenges they often face.

Key
takeaways
• Less than half of respondents (47%) are satisfied with the job their managers are doing.
• 63% of respondents saw at least 5% turnover in the past year.
• 76% of respondents say leadership is occasionally involved in talent decisions.
• 57% of respondents said employees left in the past year.

4
CHALLENGE #1

Unsupported
managers
UNSUPPORTED MANAGERS

Managers are still being

asked to do more, despite
being equipped with less.
Much as we saw in 2023, when managers were Meanwhile, though the vast majority (85%
too often overwhelmed and overtasked through of organizations say they have some sort of
turnover, there remains a disconnect between what leadership development program in place,
managers need and what most of them those who don’t are actually more likely to give
are provided. their managers high ratings—despite the fact that
they’re seeing turnover rooted in poor employee-
For example, respondents who said they received manager fit.
interpersonal complaints from employees
“regularly” or “occasionally” were far less likely to Organizations that don’t have leadership
arm their managers with any sort of behavioral development programs in place tend to have
data. In other words, the people often tasked with artificially high manager ratings. By investing in a
handling said complaints may not have adequate leadership development program, you are teaching
information—like how best to communicate, or employees how to measure performance, resulting
what behaviors are strongest—on the people in more accurate and actionable performance
whose conflicts they’re being asked to mediate. management data.

Has higher 85%

manager ratings

15%

Does not have a leadership Has a leadership

development program development program

The Predictive Index | 2024 State of Talent Optimization Report 6

UNSUPPORTED MANAGERS

Is there a dissonance at play here? Denial? Or is it possible that organizations who don’t codify
leadership training are less capable of connecting the dots?

Organizational success hinges on effective leadership. In competitive labor markets, investing in

leadership development strengthens corporate culture, boosts morale, and enhances productivity
while reducing turnover. Conversely, losing top leaders can trigger negative ripple effects throughout
the company.

How to support managers using Talent Optimization

Develop managers by arming them with tools such as behavioral data. Set managers up for
success by enabling them to set and track clear goals, enhance visibility into meetings, and
make sure accountability isn’t amorphous.

The Predictive Index | 2024 State of Talent Optimization Report 7

CHALLENGE #2

Costly
candidates
COSTLY CANDIDATES

Most companies still struggle

with time-to-hire.
Hiring is harder in certain industries due to talent measurement and process improvement. It’s
shortages. Will the practice change dramatically generally more efficient to promote from within,
in 2025? Not without a clear process that puts a but you need competent, upskilled people to feel
premium on people’s time (that of the hiring team confident in doing so. Too often, the “solution”
and the candidate). Understanding candidate cost seems to be making a speedy hire. And that’s
is crucial for companies to optimize their hiring a dice roll, especially if you’re not matching the
process effectively. candidate to the behavioral requirements of the
role.
This includes tracking turnover and time-to-hire,
which nearly half of survey respondents admit Leaning on the right data helps bring clarity to
they don’t do at all. Without firm figures that a murky process. The best hiring teams know
connect to dollars, it’s hard to understand the what they need in a role, and they can visualize
ramifications of a shaky hiring process. who fits the team and the job’s behavioral needs,
to shorten the assessment curve. By measuring
The vast majority of survey respondents (86%) costs and outcomes, companies can continually
say they have “an effective, repeatable process refine their hiring process, ensuring they’re
for hiring.” Yet most companies still struggle with making improvements rather than unintentionally
time-to-hire, needing more than a month to fill exacerbating existing issues.
their roles.

This discrepancy suggests a need for better

Time-to-hire

The Predictive Index | 2024 State of Talent Optimization Report 9

COSTLY CANDIDATES

Some 61% of respondents say they use behavioral data for hiring–an uptick from past years–with often-
profound impact. Compared with those who said they don’t, or only “sometimes” use behavioral data in
hiring, this group also:

• Shortened its time-to-hire

• Was happier with its hiring success rate
• Saw less turnover

Job fit can be fleeting. It’s an abstract concept made a little simpler by science-backed people data that
solidifies the behaviors and drives correlated to success in a specific role.

Used at scale, it can significantly ease the burden for hiring teams, HR partners, and executives alike.
And it saves time for candidates who don’t fit the role, but might do well elsewhere, by allowing them
to move on with their search.

Behavioral data usage

through the years 61% Uses behavorial
data for hiring

43%

19%

2022 2023 2024

How to support hiring teams using Talent Optimization

Equip hiring teams with more than just resumes and job ads. Optimize the entire candidate
experience, from sourcing through onboarding, by aligning the stated needs of the role with
the behaviors that lead to success in it.

The Predictive Index | 2024 State of Talent Optimization Report 10

CHALLENGE #3

Executive
misalignment
EXECUTIVE MISALIGNMENT

Leadership isn’t always attuned

to the work being done.
A lack of clarity on roles and responsibilities Of that group, 98% also have a leadership
means more time spent figuring out how to program in place. They were also far more likely
get things done rather than actually getting the to say HR is “always” an integral part of the
work done. leadership team, and, perhaps unsurprisingly, they
confirmed that leadership is usually involved in
When leadership isn’t attuned to the actual talent decisions.
work on the ground, their messaging tends to
fall flat. It’s probably not a coincidence that The takeaway? HR not only bridges the gap
companies who focus on developing leaders, between leadership and management, but their
using behavioral data regularly and having more involvement in decision-making can have a
productive, accountable meetings, also tend to profound impact on the culture of an organization.
view HR on the same level as the executive team.

A large majority (61%) of the survey

respondents affirmed they use behavioral
data when constructing their teams. 15%
Do not use
behavioral data

61%
Use behavioral data when
constructing teams

24%
Sometimes uses
behavioral data

The Predictive Index | 2024 State of Talent Optimization Report 12

EXECUTIVE MISALIGNMENT

The best talent professionals engender trust across the organization. They are the hub that connects
every spoke. Trust strengthens when it’s bolstered by a sense of understanding and self-awareness
—at every level of the organization.

Take, for example, the fact that while 88% of respondents say their company receives at least occasional
interpersonal complaints from employees (no shock there), the 12% who said they “never” get such
information also responded that they don’t use any behavioral data when communicating with
employees.

That sort of silence speaks volumes. More often than not, it’s indicative of a culture that lacks self-
awareness, and as such, fails to foster fluid, frank feedback. It’s unlikely that conflict isn’t occurring
within the companies of that 12 percent—it’s likely just not being reported, because there’s no
foundational tone of trust set at the top.

How to support executives using Talent Optimization

Make the most of that seat at the decision-making table. Set the expectation from
the top that transparency is the norm—that company-wide decisions and goals will
be communicated early and often, with an eye toward how they connect to the work
people are doing on a daily basis.
The Predictive Index | 2024 State of Talent Optimization Report 13
CHALLENGE #4

Crumbling
cultures
CRUMBLING CULTURES

Feeling connected to the

purpose of the organization
is non-negotiable.
People want to feel they belong—but it goes beyond that. A sense of psychological safety is equally
essential. Creating that safety can entail a lot of things, but a common thread among people-driven
cultures is transparency. That often means sweating the details—communicating clearly the rationale
behind key decisions, but also documenting the little stuff.

Every workforce, across nearly every industry, is adapting to seismic change at a breakneck pace, often
without adequate information. Generative AI adoption continues to outpace education. Uncertainty and
stress often result in conflict, insecurity, stalled production, and, in some cases, turnover.

It’s a scary time for a lot of workers, thanks to the sheer gravity of the unknown.

The Predictive Index | 2024 State of Talent Optimization Report 15

 CRUMBLING CULTURES

People leaders need to ask themselves: How are we implementing emerging tech, and how is that
stance communicated?

Perhaps more to the people point: How are we communicating any emerging-tech adoption in
accordance with our stated mission, vision, and values?

Asked about their meeting goals for the upcoming year, more than half (51%) of respondents said “having
better meetings” was the priority, even more so than having more or less. And given the choice between
two response options, an additional 11% said they want to “better document meetings.”

That includes documenting decisions, whether they’re related to new tech adoption or budgetary
changes, as a means of ensuring people stay connected to the mission and vision.

2024 company 51%

meeting goals:

26%
23%

11%

Documented Fewer More Better

meetings meetings meetings meetings

How to support culture using Talent Optimization

Give people the sense they have a stake in company success, every step of the way.
Encourage kudos, and stoke engagement at every level - from leadership on down
- so everyone feels equally invested.

The Predictive Index | 2024 State of Talent Optimization Report 16

Talent Optimization
as the bridge for the
HR business partner
The landscape is primed for Talent Optimization. In fact, many businesses are already practicing
components of it, whether they realize it or not.

Amid a tight hiring market, there’s a dire need for employee and leadership development solutions.
HR partners can accelerate those initiatives by enabling:

• Better candidate sourcing, selection, and onboarding

• Clearly defined pathways for learning, training, and professional development
• Rewards and recognition that support a culture of transparency
• Better engagement and performance, buoyed by analytics

The Predictive Index serves as the all-in-one entry point, putting names to the initiatives many TO
practitioners already have in motion. But every team needs a champion—someone who promotes
internal adoption and models talent-optimized behavior.

Meet your people where they are by bringing Talent Optimization to them.

17